Growth opportunities open up for window & door industry: studies predict U.S. window and door sales to grow approximately 5 percent annually over the next few years.Despite a slight decline in housing starts being predicted for 2003, the prospects for window and door sales continues to look promising. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report by The Freedonia Group, the U.S. window and door industry is projected to grow 4.9 percent annually over the next five years, to $31 billion. The study, entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: Windows & Doors, states that "increases in average home sizes and the growing use of value-added products" will offset the effects of a soft housing market. "Everyone remains cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op for 2003," said Alan Campbell Alan Campbell may be:
1. motionless; not flowing or moving. 2. inactive; not developing or progressing. mode for the year." U.S. Outlook Positive Even with the slight decline predicted for new housing, the outlook for the window and door industry remains optimistic due to the continued growth of the remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling and replacement market. According to the WDMA's Statistical Review & Forecast, out of the 59.1 million units of windows shipped last year, 13.4 percent more windows were used in remodeling and replacement applications last year (31.4 million units) than for new construction (27.7 million units). This trend is predicted to continue for the next few years, with 17.5 percent more growth expected by 2006 for the remodeling market (34.3 million units of windows), compared to new construction sales (29.2 million units). Vinyl vinyl /vi·nyl/ (vi´nil) the univalent group CH2dbondCH—. vinyl chloride a vinyl group to which an atom of chlorine is attached; the monomer which polymerizes to polyvinyl chloride; it is toxic is expected to continue its dominance in terms of market share, particularly in the remodeling market, where the WDMA WDMA Wavelength Division Multiple Access WDMA Window & Door Manufacturers Association WDMA Washington Defense of Marriage Alliance (Washington state, USA) WDMA Where Da Movies At? says it outsold out·sold v. Past tense and past participle of outsell. wood products by 58 percent in 2002. "Vinyl (PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. ) actually surpassed wood a few years ago," says Campbell. "There were several factors driving its rapid growth, primarily ease of maintenance." However, wood seems to be the preferred material for new construction. According to the WDMA's report, wood window units outsold vinyl by 31 percent in 2002 in that sector, and is predicted to continue its dominance over the next few years. Wood is also the preferred choice for residential passage doors, accounting for nearly 100 percent of the market, the report says. For residential entry doors shipped in 2002, steel was used in 66 percent of the applications, with wood accounting for 22 percent and fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. representing the remaining 12 percent. For non-residential passage doors, the report says, wood was also the top choice in 2002; out of 7.3 million units shipped, wood accounted for 40 percent of the market. In entry doors however, out of 3.3 million units shipped in 2002, steel accounted for slightly more than half the market, with aluminum at 33 percent and wood at 6 percent. In looking at the industry from a monetary standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the , wood windows and doors outsold plastic by 138 percent last year, $10.4 billion compared to $4.3 billion. By 2007, Freedonia says, that percentage is expected to decrease to 92 percent, with wood at $11.9 billion and plastic at $6.2 billion. Metal, it says, will surpass wood as the top selling material by 2007, although most of the $12.9 billion will be due to sales of exterior doors. Out of the $24.5 billion market in 2002, imports accounted for $900 million, Freedonia reports. Imports have had a greater effect on doors than on windows. "The wood door industry has been greatly affected by large imports of residential wood doors from overseas" says Campbell. "In many cases, these doors have a competitive advantage because of lower raw material costs and labor costs at their point of manufacture. Much of this competition has actually been coming from the Far East and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . "Windows, on the other hand, are much more sophisticated in terms of their manufactured components, particularly glazing Glazing The application of finely ground glass, or glass-forming materials, or a mixture of both, to a ceramic body and heating (firing) to a temperature where the material or materials melt, forming a coating of glass on the surface of the ware. and hardware. With the exception of Canada, we see very little volume of windows imported into the U.S." Canada Sees Similar Trends The Canadian window and door market, it seems, is generally following in the footsteps of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . "The housing market in Canada was extremely strong in 2002 (200,000-plus housing starts, up from approximately 165,000)--the best it's been since the mid-1980s," says Tom Duffy, business development officer, for the Canadian Window & Door Industry. The remodeling and renovation market has also been extremely strong, Duffy adds. "It's all very good, and the potential for the window and door market this year is also looking very good." Material trends, particularly for the window market, are also similar to that of the United States. "Solid vinyl currently accounts for approximately 65 to 70 percent of window sales. If, on top of that you add vinyl clad CLAD canine leukocyte adhesion disease. , it climbs to 75 to 80 percent," Duffy says. Contributing to vinyl's growth are its low maintenance--particularly in regards to finishing--and cost. However, unlike in the United States where regional weather conditions often influence material preference, fluffy fluff·y adj. fluff·i·er, fluff·i·est 1. a. Of, relating to, or resembling fluff. b. Covered with fluff. 2. Light and airy; soft: fluffy curls; a fluffy soufflé. says that vinyl appears to be "very strong across the whole country, from east to west." Wood, however, is the material of choice in high-end installations. Duffy says that architects often prefer wood because of its "warmth" and aesthetic appeal. European Outlook Shows Little Growth Like its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. counterparts, the European window and door industry is expected to increase slightly in 2003, to 101.5 million window units. This follows two years of stagnation Stagnation A period of little or no growth in the economy. Economic growth of less than 2-3% is considered stagnation. Sometimes used to describe low trading volume or inactive trading in securities. Notes: A good example of stagnation was the U.S. economy in the 1970s. at 100.5 million window units, according to Eike Gehrts, technical project manager with EuroWindoor, the organization which represents the three sectors of the European window and door industry: the Federation of the European Window and Curtain Wall curtain wall Nonbearing wall of glass, metal, or masonry attached to a building's exterior structural frame. After World War II, low energy costs gave impetus to the concept of the tall building as a glass prism, an idea originally put forth by Le Corbusier and Ludwig Mies Assns., the Federation of the European Associations for Building Joinery joinery, craft of assembling exposed woodwork in the interiors of buildings. Where carpentry refers to the rougher, simpler, and primarily structural elements of wood assembling, joinery has to do with difficult surfaces and curvatures, such as those of spiral and the Federation of the European Plastic Window and Door Manufacturers. Aiding the growth, Gehrts says, is the trend in Europe toward customization, i.e., manufacturing to order and single lot sizes. "Furthermore, a lot of regional factors influence the window and door markets. In central and northern Europe, energy efficiency is the key issue, whereas for instance in southern Europe Southern Europe or sometimes Mediterranean Europe is a region of the European continent. There is no clear definition of the term which can vary depending on whether geographic, cultural, linguistic or historical factors are taken into account. , building style and traditions play a key role." Very little product--only about 10 percent--is exported, he adds. "The European window market is typically a regional market. Only a very few producers operate on the national or European scale. The latter are typically the big system houses providing the market with system solutions for PVC and aluminum windows." Because of its low price--"it's about 20 percent less than wood frames"--and convenience, PVC continues to be the dominant material used in European window frames, Gehrts says. It is used in approximately 42 percent of the products, followed by solid hardwood hardwood: see wood. hardwood Timber obtained from broad-leaved, flower-bearing trees. Hardwood trees are deciduous trees, except in the warmest regions. and wood clad products, at 33 percent. Because of the climate in Europe, softwoods are not used for exterior parts.
U.S. Shipments of Prime Windows
(Millions of Units)
Wood (incl. vinyl clad & metal Aluminum PVC Other
clad wood units)
2000 22.9 7.6 23.8 0.6
2001 23.6 6.5 25.5 0.7
2002 24.4 6.5 27.3 1.0
2003 * 24.3 6.4 28.4 1.2
2004 * 24.4 6.3 29.4 1.5
2005 * 24.4 6.1 30.5 1.8
2006 * 24.4 6.1 30.9 2.1
Source: WDMA
According to the Window & Door manufacturers Assn., vinyl dominates the
remodeling market, where in 2002 it outsold wood units by 58 percent.
However, wood windows remain strong in new construction, surpassing
vinyl products by 31 percent last year. These trends are expected to
continue over the next few years.
* forecasted
Note: Table made from bar graph
Material Usage Trends in Europe
Wood PVC Aluminum other
2000 31.1% 38.1% 30.8%
2001 34.0% 39.5% 25.5% 1%
2002 * 32.5% 42.2% 24.3% 1%
2003 * 32.7% 41.5% 24.8% 1%
Source: EuroWindoor
* estimated Wood figures include clad
According to EuroWindoor, PVC continues to be the most widely used
material in windows. The primary reasons for this are price and the
material's low maintenance requirements.
Note: Table made from pie chart
U.S. Housing Forecast
(in thousands)
2000 2001 2002 2003 2004
Total Starts 1,573 1,603 1,709 1,690 1,650
Single Family 1,232 1,273 1,364 1,347 1,308
Multi-Family 341 330 346 343 342
Existing 5,159 5,291 5,598 5,601 5,439
Home Sales
Source: National Association of Home Builders
Sales of windows and doors are tied into the housing market. The
National Association of Home Builders is predicting moderate declines in
total housing starts over the next two years. Existing home sales will
remain stable in 2003, before experiencing a slight decline in 2004.
U.S. Window & Door Demand
(in million dollars)
% Annual Growth
Item 1997 2002 2007 1997/02 2002/07
Total Demand 18,370 24,500 31,050 5.9 4.9
Wood 7,810 10,370 11,900 5.8 2.8
Metal 8,290 9,780 12,950 3.4 5.8
Plastic 2,270 4,350 6,200 13.9 7.3
Net Imports 140 900 1,650 45.1 12.9
Shipments 18,230 23,600 29,400 4.5 4.5
Source: The Freedonia Group Inc. (Cleveland, OH)
Although plastic usage has surpassed that of wood in the window
industry, dollar sales of wood window and door sales ranked highest at
more than $10 billion last year. Metal is predicted to surpass wood by
2007.
Contact Information More information on the window and door industry can be obtained by contacting the organizations listed below. For a listing of additional associations, consult Chapter 13 of the Red Book Buyer's Guide at www.iswonline.com Canadian Window & Door Manufacturers Assn.: (905) 286-0660, www.cwdma.ca EuroWindoor: (49) 0 69 955054-0, www.eurowindoor.org National Association of Home Builders The National Association of Home Builders (NAHB) is one of the largest trade associations in the United States. Headquartered in Washington, DC, the association organizes one of the largest conventions in North America, The International Builders' Show, which draws more than : (202) 822-0200, www.nahb.org National Association of the Remodeling Industry: (800) 611-6274, www.nari.org Window & Door Manufacturers Assn.: (847) 299-5200, www.wdma.com |
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